|
Hamilton, Bermuda - February 23, 2016 Highlights • The Company reports a net loss of $68.2 million and a loss per share of $0.22 for the first quarter of 2016. Excluding impairment, mark to market loss on interest rate derivatives and other one-off effects, the net loss is $41.5 million. • In January 2016, the Company took delivery of Golden Barnet, Golden Bexley, Golden Scape and Golden Swift, two Capesize and two Newcastlemax dry bulk newbuildings. • In January 2016, the Company entered into a Capesize revenue sharing agreement with three other owners of Capesize vessels. • In February 2016, the Company took delivery of, and simultaneously sold, the Front Caribbean, and chartered the vessel in for a period of twelve months. • In February 2016, the Company agreed amendments to its bank facilities, whereby there are no repayments for the next two and a half years and various covenants are amended or waived • In February 2016, the Company completed a private placement and in March 2016 a subsequent repair issue, which generated net proceeds of $205.4 million. • In March 2016, the Company entered an agreement to postpone delivery of two Capesize newbuildings. Preliminary First Quarter 2016 Results The Company reports a net loss of $68.2 million and a loss per share of $0.22 for the first quarter compared with a net loss of $69.3 million and a loss per share of $0.40 for the preceding quarter. The net loss in the first quarter includes (i) a gain on sale of newbuildings and amortization of deferred gain of $0.1 million, (ii) an impairment loss on securities of $10.0 million, (iii) a loss on derivatives of $12.9 million, mainly related to unrealized losses on interest rate hedges, (iv) a loss provision of $1.8 million against uncollectible receivables, and (v) an impairment loss of $2.1 million relating to the Company's investment in a joint venture. The net loss in the preceding quarter includes (i) a loss on sale of newbuildings and amortization of deferred gain of $8.5 million (which includes a loss of $8.9 million on the sale of two converted Capesize newbuilding contracts to Frontline Ltd.), (ii) an impairment loss on securities of $23.3 million, (iii) a loss provision of $4.7 million against uncollectible receivables, (iv) an impairment loss of $4.5 million relating to the Golden Lyderhorn, a vessel held under capital lease, (v) an impairment loss of $4.6 million relating to the Company's investment in a joint venture, and (vi) a mark-to-market gain on derivatives of $1.2 million. If these items are excluded, the adjusted losses in the first and preceding quarters are $41.5 million and $29.4 million, respectively. This deterioration in results is primarily due to the decrease in vessel earnings (or time charter equivalent revenues) of $13.1 million. Cash and cash equivalents increased by $151.0 million in the first quarter. The main cash movements were the payment of $161.7 million in respect of the Company's newbuilding program, $48.1 million received from the sale the Front Caribbean and the two newbuilding contracts sold in the prior quarter, the net draw down of debt of $95.0 million and the net proceeds from the private placement of $205.4 million. In addition, $21.6 million was used in operations. Full report 
Golden Ocean Group Limited press release |
